**ITV and RedBird IMI Explore Merger of Production Units**
British broadcaster ITV is in preliminary discussions with Abu Dhabi-backed RedBird IMI regarding a potential merger of their production businesses, according to sources familiar with the matter. The talks are focused on combining ITV’s Studios division with All3Media, the producer behind the popular TV show “The Traitors,” which RedBird IMI acquired for £1.15 billion ($1.43 billion) last year.
One proposed scenario involves ITV spinning off its broadcasting operations and merging its Studios with All3Media, allowing both ITV and RedBird IMI to hold stakes in the new production entity. However, the discussions are still in the early stages and may not result in a deal. Representatives from ITV and RedBird IMI have declined to comment on the matter.
A merger between All3Media and ITV Studios would create one of Europe’s largest production groups, with projected revenues of approximately £3.176 billion ($3.95 billion) based on 2023 figures, positioning it alongside competitors such as Banijay, BBC Studios, and Fremantle. Following the news of the talks, ITV’s shares increased by 3.4%.
These discussions come after RedBird IMI announced plans to sell the Telegraph newspaper group, which it owns but cannot control due to UK regulations prohibiting foreign government ownership of newspapers. ITV previously considered acquiring All3Media in 2023 from its then joint owners, Liberty Global and Warner Bros Discovery, to integrate it with its Studios division. However, those negotiations fell through due to disagreements over terms, with ITV emphasizing the need to adhere to strict financial criteria.
ITV’s CEO Carolyn McCall expressed interest in All3Media in July 2023, noting it aligned with the company’s strategy, but ultimately deemed it not the right fit. McCall has been exploring various options for ITV amid a declining share price, which has halved to 71 pence since she took over in January 2018, resulting in a market valuation of £2.7 billion as of the latest close. Other private equity firms have also engaged in discussions with ITV regarding its Studios unit in recent months.